Page contents

M and B 2, 2nd Edition by Dean Croushore – Test Bank

Instant delivery only

  • ISBN-10 ‏ : ‎ 1111823359
  • ISBN-13 ‏ : ‎ 978-1111823351

In Stock

Original price was: $70.00.Current price is: $28.00.

Add to Wishlist
Add to Wishlist
Compare
SKU:tb1002309

M and B 2, 2nd Edition by Dean Croushore – Test Bank

Chapter 9—Government’s Role in Banking

MULTIPLE CHOICE

1. Which of the following is NOT a reason that the government regulates banks?
a. To reduce the externalities caused by bank problems
b. To stabilize the money supply
c. To prevent bank runs
d. To keep banks large

ANS: D PTS: 1 DIF: Basic TOP: Regulation of Banks
TYP: Factual

2. When many depositors go to a bank at the same time to withdraw their money, there is said to be
a. contagion.
b. a loss of credibility.
c. a loss of reserves.
d. a bank run.

ANS: D PTS: 1 DIF: Basic TOP: Regulation of Banks
TYP: Factual

3. A bank run occurs when
a. a bank does not have enough reserves to meet its target for required reserves.
b. a bank’s liabilities exceed its assets.
c. a bank fails to meet its capital requirements.
d. many depositors go to a bank at the same time to withdraw their money.

ANS: D PTS: 1 DIF: Basic TOP: Regulation of Banks
TYP: Factual

4. When a bank run spreads from one bank to another, there is said to be
a. contagion.
b. a loss of credibility.
c. a loss of reserves.
d. an over-run.

ANS: A PTS: 1 DIF: Basic TOP: Regulation of Banks
TYP: Factual

5. Contagion occurs when
a. a bank does not have enough reserves to meet its target for required reserves.
b. a bank run spreads from one bank to another.
c. a bank fails to meet its capital requirements.
d. many depositors go to a bank at the same time to withdraw their money.

ANS: B PTS: 1 DIF: Basic TOP: Regulation of Banks
TYP: Factual

6. The mechanisms by which cash, checks, and electronic payments flow from buyers to sellers are called
a. the transactions system.
b. float.
c. the payments system.
d. ACH.

ANS: C PTS: 1 DIF: Basic TOP: Regulation of Banks
TYP: Factual

7. The payments system is the mechanisms by which cash, checks, and electronic payments flow from buyers to
a. banks.
b. sellers.
c. the government.
d. customers.

ANS: B PTS: 1 DIF: Basic TOP: Regulation of Banks
TYP: Factual

8. The paperwork that a bank must fill out, reporting its assets, liabilities, and profits to the government, is called a
a. balance-sheet analysis.
b. P&L statement.
c. white paper.
d. call report.

ANS: D PTS: 1 DIF: Basic TOP: Regulation of Banks
TYP: Factual

9. A call report is
a. an analysis of bank’s balance sheet.
b. a P&L statement.
c. a report on a bank’s assets, liabilities, and profits.
d. a description of a bank’s compliance with the Fair Lending Act.

ANS: C PTS: 1 DIF: Basic TOP: Regulation of Banks
TYP: Factual

10. The Glass-Steagall Act was passed into law in
a. 1999 and allowed banks to engage in investment activities as well as to sell insurance.
b. 1913 and created the Federal Reserve System, giving it the responsibility as a lender of last resort.
c. 1933 and prohibited banks from underwriting securities or buying and selling securities for their customers or selling mutual funds.
d. 1980 and allowed the payment of interest on transactions accounts of individuals, phased out interest-rate ceilings on deposits, made all financial institutions subject to reserve requirements, and raised the deposit-insurance ceiling to $100,000.

ANS: C PTS: 1 DIF: Basic TOP: Regulation of Banks
TYP: Factual

 

Reviews

There are no reviews yet.

Write a review

Your email address will not be published. Required fields are marked *

Product has been added to your cart